MMK shipments to automotive industry reach record highs
This result is higher than the previous record of annual deliveries to the automotive industry of 528,000 tonnes set in 2017. The automotive industry is one of MMK's most significant counterparties. For many years, the Company has been successfully implementing a strategy for the development of automotive sheet production and imports substitution.
Currently, MMK is a leading supplier of ferrous metal products to automotive plants and to other related enterprises that produce automotive components. The Company supplies cold rolled and hot-dip galvanized products to all leading Russian enterprises in the sector. Among them are AVTOVAZ, KAMAZ, GAZ and UAZ. A separate business area is the supply of metal products to foreign car manufacturers, which base their facilities in Russia. In 2018, MMK increased supplies to localised manufacturers by 28% year-on-year. The Company adopted the production of more than 500 new graded products at the request of the manufacturers. MMK continues working on enabling all automotive enterprises in Russia accept its products in their production processes.
In May 2018, in a joint venture between MMK and Turkish partners, a new service metal centre MMK-Dzhokkunoz-Alabuga was opened centre in Tatarstan. It specialises in the production of steel billets, which are used to make automobile parts. The production capacity of the centre is up to 60,000 tonnes per year and its launch strengthened MMK’s position in the automobile market in the region with the highest concentration of car manufacturers.
The launch of Mill 2000, a cold-rolling complex at sheet rolling facility No. 11, in 2011-2012 played a significant role in the increased presence of MMK on the metal products market for the automotive sector. The complex allowed for close competition with foreign manufacturers of similar products. Due to its advanced technologies, it has become possible to meet the most stringent requirements for the quality of the surface of cold-rolled and hot-dip galvanized steel, to provide the right thickness and to produce high-strength IF-HS, HSLA, BH and DP steel, which is needed by car manufacturers and automotive component manufacturers.
MMK is one of the world's largest steel producers and a leading Russian metals company. The company's operations in Russia include a large steel-producing unit encompassing the entire production chain, from the preparation of iron ore to downstream processing of rolled steel. MMK turns out a broad range of steel products with a predominant share of high-value-added products. In 2018, the company produced 12.7 million tonnes of crude steel and 11.7 million tonnes of commercial steel products. MMK Group had sales in 2018 of USD 8,214 million and EBITDA of USD 2,418 million.
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